ALFA-LAVAL AB UNSP/ADR - ALFVY STOCK NEWS

Alfa Laval has entered into an agreement to acquire StormGeo, a leading provider of weather intelligence solutions, for MNOK 3,630 (approximately MSEK 3,700). This acquisition aims to enhance Alfa Laval's service offerings in the marine industry, supporting decarbonization efforts and digital services knowledge. StormGeo, based in Bergen, Norway, employs 515 people and reported total sales of MNOK 714 in 2020. The transaction is expected to close in Q2 2021 and is neutral to Alfa Laval's EBITA margin and earnings per share.

Alfa Laval AB has repurchased 82,500 shares between April 28 and April 30, 2021, as part of its SEK 2 billion share buyback program initiated on April 27. The program, aimed at optimizing the capital structure, is set to continue until April 25, 2022, under EU regulations. The share repurchases were conducted on Nasdaq Stockholm, totaling approximately SEK 23.06 million across the transaction period. Following these buybacks, Alfa Laval holds 82,500 own shares from a total of 419,456,315 shares, indicating a solid commitment to enhancing shareholder value.

Alfa Laval has secured a SEK 155 million order to supply a processing line for renewable diesel and jet fuel production to a petroleum refiner in Europe. This order, booked in the Food Systems unit of the Food & Water Division, marks a significant step towards achieving the European Renewable Energy Directive (RED II) targets, necessitating 32% of total energy needs to be met with renewable sources by 2030. The order includes high-speed separators and heat exchangers, with delivery slated for 2022.

The Annual General Meeting of Alfa Laval AB was held on April 27, 2021, utilizing postal voting due to covid-19 precautions. Shareholders approved the 2020 income statement and balance sheet, and discharged the Board of Directors and CEO from liability. A dividend of SEK 5.50 per share was declared, with a record date of April 29, 2021, and payment expected on May 4, 2021. The Board was expanded to nine members, with Dennis Jönsson re-elected as Chairman. Share acquisition authorization was granted, and new provisions for proxy voting were introduced in the Articles of Association.

On April 27, 2021, Alfa Laval reported a 5% decrease in order intake to SEK 10,204 million and a 7% drop in net sales, totaling SEK 8,969 million for Q1 2021. However, the adjusted EBITA margin improved to 17.1% due to cost reduction efforts. The company noted a stable cash flow and reduced net debt of 0.43 times EBITDA. A dividend of SEK 5.50 per share is proposed, alongside a buyback mandate of 5% of shares. The outlook for Q2 suggests stable demand compared to Q1.

Alfa Laval has announced a partnership with Stena Recycling to create a sustainable recycling initiative for heat exchangers, allowing for up to 100% metal regeneration. Launched on April 26, 2021, this initiative aims to replace inefficient plate heat exchangers, leading to significant energy savings and reduced CO2 emissions. The project starts in the Nordic region and is part of Alfa Laval's commitment to achieving carbon neutrality by 2030.

Alfa Laval has successfully refinanced its Revolving Credit Facility, securing a EUR 700 million credit line, with an option to increase by EUR 200 million. This five-year facility can potentially extend for two additional years and is the first of its kind in the Nordic region since March 2020. The refinancing strengthens Alfa Laval's balance sheet and liquidity position, showcasing support from a syndicate of banks, including BNP Paribas and SEB. Alfa Laval operates in Energy, Marine, and Food & Water sectors, with 2020 sales of SEK 41.5 billion.

Alfa Laval, a leader in heat transfer and fluid handling, announced the commencement of tests on a marine fuel cell system in collaboration with Blue World Technologies and notable marine industry partners. The tests, taking place at Alfa Laval's Test & Training Centre in Denmark, aim to explore the system's viability for marine fossil-free auxiliary power using methanol as fuel. This initiative supports the International Maritime Organization's goal of reducing vessel-related greenhouse gas emissions by 50% by 2050, aligning with Alfa Laval's commitment to sustainable solutions.

On April 6, 2021, Alfa Laval announced its partnership with Liquid Wind, a Swedish company focused on renewable clean fuels. Alfa Laval will join the Liquid Wind board and leverage its heat transfer expertise to enhance the efficiency of eMethanol production facilities. The consortium aims to capture biogenic carbon emissions and produce green methanol using renewable energy. This collaboration supports the growing demand for carbon-neutral synthetic fuels, projected to reach up to 20,000 TWh by 2050.